Julie A. Su, Acting Secretary of Labor for the United States Department of Labor, has filed a complaint against Gordo Corporation, doing business as El Gordito, and its managers Patricia Gonzalez Lara and Samuel Gonzalez Lara. The complaint was filed in the United States District Court for the Southern District of Illinois on May 21, 2024.
The case centers around alleged violations of the Fair Labor Standards Act (FLSA) by El Gordito and its managers during an investigation period from May 22, 2021, to May 21, 2023. According to the complaint, Julie A. Su asserts that El Gordito failed to comply with multiple sections of the FLSA by not paying minimum wage and overtime wages to their employees. Specifically, it is alleged that full-time servers were not paid at least $7.25 per hour as required by law. The complaint states that "Defendants failed to consistently pay their full-time servers any hourly wages" and "failed to keep a record of hours worked and underreporting actual hours worked on payroll."
Furthermore, the defendants are accused of manipulating payroll records to reflect inaccurate working hours and tips received by employees. The complaint details how Patricia and Samuel Gonzalez Lara managed operations at El Gordito, including hiring and firing employees, setting work schedules, and determining pay rates. Both individuals are said to have acted directly or indirectly in the interests of El Gordito’s employees.
The lawsuit also highlights violations related to overtime pay. It is claimed that El Gordito did not compensate employees at one-and-a-half times their regular rate for hours worked beyond 40 in a workweek. Additionally, some employees were allegedly paid off-the-books in cash without proper record-keeping or overtime compensation.
The Acting Secretary seeks several forms of relief from the court:
1. An injunction preventing further violations of Sections 206, 207, 211, 215(a)(2), and 215(a)(5) of the FLSA.
2. Payment of unpaid minimum wages and overtime wages along with an equal amount in liquidated damages.
3. If liquidated damages are not awarded, an injunction restraining Defendants from withholding unpaid compensation plus prejudgment interest.
4. Any other necessary relief deemed appropriate by the court.
Representing Julie A. Su in this matter is Alice B. Catlin from the U.S. Department of Labor's Office of the Solicitor based in Chicago.